Costain makes improved offer for Mouchel

first_img Show Comments ▼ John Dunne whatsapp Share British construction firm Costain has made an improved takeover approach worth around £172 million pounds for struggling business services group Mouchel.The proposal comprises 0.5531 Costain shares and 30 pence in cash for each Mouchel share which, based on Costain’s closing share price of 222.75 pence on Thursday, values each Mouchel share at around 153.2 pence.Earlier this month Mouchel rejected an approach from Costain worth about £148m, saying the offer significantly undervalued the company.“The strategic rationale for a combination has been widely supported and following extensive discussions with both sets of shareholders we have now significantly enhanced our proposal,” said Costain Chairman David Allvey.“Having made our first approach to Mouchel seven weeks ago and as one of a number of options to deliver our strategy, we believe that our revised proposal is attractive to both sets of shareholders and should now encourage Mouchel’s board to engage with us without delay.”Mouchel, whose operations range from highway maintenance to consulting for local authorities, has been hit hard by government cutbacks and has embarked on a strategic review after warning it may need fresh funds if it fails to reach a refinancing deal with its banks.Shares in Mouchel, which have risen by more than 50 per cent in the last month, closed at 113.75 pence on Thursday, valuing the business at around £133m Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotChicken Bao: Delicious Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof whatsapp Friday 21 January 2011 2:45 am Costain makes improved offer for Mouchel Tags: NULLlast_img read more